Can anyone tell me why PEN are 4c and TOE are 140c when, subject to the Uranium Access agreement between PEN and TOE, published on 02 Feb 2006 (see http://www.asx.com.au/asxpdf/20060202/pdf/3v9ghl2l3zmjb.pdf ):
"Toro (subject to right to withdrawal clauses) shall be the sole contributor to all expenditure required to fund the Joint Venture activities from the commencement date until such time as it has spent the sum of $500,000, which shall be spent within the first 24 months. Toro can earn up to 70% by spending $1 million within a 48 month period."
So, PEN are being free carried by TOE on their South Australian exploration joint venture tenements. This means Toro cop all the Uranium exploration expense and PEN has an 'at worst' 30% interest in those prospective areas.
The other thing is that if you actually look at the Project map and details on Toro's web site ( http://www.toroenergy.com.au/Projects.html ) the Joint Venture areas are quite substantial and some of these areas are 'high priority projects that warrant immediate attention'. Some of the names that TOE use compared to PEN don't always match up, but if you do a little digging you can see the match ups from the maps.
So, I was wondering if anyone has any constructive comment of this. Are PEN undervalued in this current U run?
Oh yeah, the other thing is that on 17 Jan, PEN announced it had "exercised its call option to acquire 100% of the issued capital of Taspac". ( http://www.kanownalights.com.au/newsroom/asx/170106_duediligence.pdf )
Taspac ( TPML ) is a South African company and as part of an Independent Review commisioned by PEN, the review found,
"The uranium and molybdenum exploration potential of the TPML properties is considered to be high. It is understood that reported uranium deposits aggregating to approximately 2Mt of mineralisation have previously been defined within the projects, and it is considered highly likely that additional occurrences will be identified with further systematic exploration. The properties are also located in a country with a significant uranium mining history and a political framework that encourages investment in the uranium sector."
So, with known deposits in South Africa and with interest in highly prospective properties of South Australia - both regions in which Uranium mining has actually been permitted - are PEN the diamond in the Uranium rough?
---------- This is just my analysis. Please do your own research.
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